UNIVERSITY OF TORONTO
Department of Economics
ECO372H1F LEC5101– Midterm
Data Analysis and Applied Econometrics in Practice
Instructor: Andrew Paulley
Oct 22, 2025
This exam booklet contains 10 pages (including this cover page and a page for scratch work) and 4
questions.
You also have a Supplementary Material booklet which has 3 pages. This includes additional in-
formation and formulas.
This exam is closed book. You may use a non-programmable calculator.
You have a total of 1 hours and 50 minutes to complete the exam. The questions are worth a total
of 57 points. The exam begins at 5:10pm.
1
, ECO372H1F LEC5101 Midterm Oct 22, 2025
1. This question is regarding the Bertand and Mullainathan (2004) paper we discussed in class
and was used in your first assignment. As you will recall, this paper used a résumé audit study
to assess the extent of racial discrimination in hiring.
(a) (4 points) Describe what the potential outcomes Yi1 and Yi0 represent for an individual i,
in this context.
(b) (4 points) Explain the role of randomization in this study and discuss how it helps to
address potential bias associated with confounding variables.
Page 2 of 10
Department of Economics
ECO372H1F LEC5101– Midterm
Data Analysis and Applied Econometrics in Practice
Instructor: Andrew Paulley
Oct 22, 2025
This exam booklet contains 10 pages (including this cover page and a page for scratch work) and 4
questions.
You also have a Supplementary Material booklet which has 3 pages. This includes additional in-
formation and formulas.
This exam is closed book. You may use a non-programmable calculator.
You have a total of 1 hours and 50 minutes to complete the exam. The questions are worth a total
of 57 points. The exam begins at 5:10pm.
1
, ECO372H1F LEC5101 Midterm Oct 22, 2025
1. This question is regarding the Bertand and Mullainathan (2004) paper we discussed in class
and was used in your first assignment. As you will recall, this paper used a résumé audit study
to assess the extent of racial discrimination in hiring.
(a) (4 points) Describe what the potential outcomes Yi1 and Yi0 represent for an individual i,
in this context.
(b) (4 points) Explain the role of randomization in this study and discuss how it helps to
address potential bias associated with confounding variables.
Page 2 of 10
